Limelight Networks Inc (LLNW) saw its loss narrow to $3.92 million, or $0.04 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $4.14 million, or $0.04 a share. On an adjusted basis, net profit for the quarter was $1.76 million, when compared with net loss $0.42 million in the last year period.
Revenue during the quarter went up marginally by 2.43 percent to $43.78 million from $42.74 million in the previous year period. Gross margin for the quarter expanded 387 basis points over the previous year period to 44.91 percent. Operating margin for the quarter stood at negative 7.30 percent as compared to a negative 8.78 percent for the previous year period.
Operating loss for the quarter was $3.20 million, compared with an operating loss of $3.75 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $7.55 million compared with $5.33 million in the prior year period. At the same time, adjusted EBITDA margin improved 478 basis points in the quarter to 17.24 percent from 12.47 percent in the last year period.
Commenting on the fourth quarter and full year results, chief executive officer, Robert Lento said, “The fourth quarter was our strongest of the year, and 2016 was our best year ever across a number of operational and financial metrics. These results help solidify our belief, that the transition to profitable growth is underway and gaining momentum.”
Limelight Networks forecasts revenue to be in the range of $175 million to $180 million for fiscal year 2017. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $0.02 to $0.06 on adjusted basis.
Operating cash flow improves marginally
Limelight Networks Inc has generated cash of $6.56 million from operating activities during the year, up 1.82 percent or $0.12 million, when compared with the last year.
The company has spent $25.37 million cash to meet investing activities during the year as against cash outgo of $18.92 million in the last year.
The company has spent $3.92 million cash to carry out financing activities during the year as against cash outgo of $0.02 million in the last year period.
Cash and cash equivalents stood at $21.73 million as on Dec. 31, 2016, down 51.36 percent or $22.95 million from $44.68 million on Dec. 31, 2015.
Working capital drops significantly
Limelight Networks Inc has witnessed a decline in the working capital over the last year. It stood at $56.73 million as at Dec. 31, 2016, down 34.10 percent or $29.35 million from $86.08 million on Dec. 31, 2015. Current ratio was at 2.35 as on Dec. 31, 2016, down from 4.65 on Dec. 31, 2015.
Days sales outstanding were almost stable at 29 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding was almost stable at 17 days for the quarter, when compared with the previous year period.
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